All the latest economic and financial news, including the latest developments around Greece’s bailout talksIMF’s Thomsen: there’s ‘a bit more impetus’City investors don’t see a deal soonGreek bond selloff deepensWSJ: Here comes the messy Greek endgame 10.33am BST Cyprus’s finance minister just urged the Greek government and its creditors to make progress “without delay”.Speaking on Bloomberg TV, Harris Georgiades said Greece can avoid the banking crisis and capital controls that gripped Cyprus in 2013, if both sides act quickly.I would hope Greece does not go through a similar situation…. it can definitely be avoided.“If we do not receive feedback on good progress... that will be negative.”Such an outcome would imply we are entering unchartered water, for which no planning can be fully adequate….. and that’s why I’m not even willing to speculate or discuss an outcome which the Greek government itself has ruled out.#Cyprus' FinMin Georgiades in interview w/ Blooomberg TV: No planning could be adequate for any #Grexit. 10.08am BST Turning back to Finland’s general election quickly, and this chart shows how the next government will take control of a country in a significant economic hole:Millionaire businessman wins #Finland, likely to need propping up by vehemently anti-EU group. http://t.co/e9OhbpzDzR pic.twitter.com/XqQc4Phf4Z 9.49am BST The Greek bond selloff is intensifying, pushing yields higher into the danger zone.Greece sweep - its deteriorating : 10-yr 13.09 +19bp 5-yr 19.195 +62½bp 3-yr 27.86½ +111½bp 9.46am BST European investors are shrugging off the Greek crisis, pushing shares up in early trading.The FTSE 100 is up almost 1%, led by mining stocks. That follows the China’s central bank’s decision to ease monetary policy last night. With most of the region seeing signs of bottoming in data, I feel it’s not long before investors focus on the fundamentals and pay less attention to the Greece risk. 9.23am BST A depressing reminder of the social damage suffered since the financial crisis began:Children living in jobless households in euro-area periphery countries doubled 2008-2013 http://t.co/UmmrX0IoJi pic.twitter.com/Ww1imAnnwJ 9.09am BST European commissioner Pierre Moscovici sounded like a man tapping his watch with increasing impatience this morning.He told France’s iTele TV network that:“We really need - now, there is no time to lose - that the Greek government delivers the reforms we’re asking for.” 8.47am BST Greek bonds are weakening this morning, as fears of a default linger over the bond market.This has pushed up the yield on its three, five and 10-year bonds:GREEK YIELDS 10-yr 13.01 +11½ 5 - yr 18.70 +13 3-yr 26.97 +22 8.43am BST Simon Nixon of the WSJ is always worth reading about Greece; today’s column warns that eurozone officials are preparing for a ‘messy’ default.One option is that Greece fails to get a deal with its creditors (quite plausible), runs out of cash (ditto) and then defaults on a debt repayment payment. But that wouldn’t immediately trigger Grexit, as Simon explains:How things play out after [a default] that will depend on who Greece decides to default on and the reaction of bank depositors. If Athens defaults on a government bond or loan, then the ECB will have to raise the price that banks pay to access emergency liquidity from the Bank of Greece, effectively depriving them of access to fresh supplies of euros. If Athens decides instead to default to its own citizens, perhaps by issuing IOUs to pay pensions and salaries, bank customers may start emptying euros from their accounts. Again, banks would quickly run out of collateral for emergency liquidity.If you haven't read about Greek crisis then you should start: this @Simon_Nixon is brilliant, clear and frightening http://t.co/W8RpdUhKkb 8.32am BST Greek banks risk running out of the collateral they need to keep accessing emergency funding from the European Central Bank, the head of the Bank of France has warned.Christian Noyer told Le Figaro that the lifeline being provided by the ECB couldn’t last forever:“At some point, Greek banks are likely to be unable to offer enough collateral to access refinancing even for emergency liquidity.” 8.24am BST There was drama in the north of the eurozone last night, as Finland eurosceptic Finns party surged to second place in the country’s general election.The Finns secured 38 seats, while the opposition Centre party came first with 49. Related: Pro-EU coalition loses in Finland election as Centre party wins 49 seats I believe Finland’s policy towards Greece will change [if he joined the government]. It will change for the better, because it can’t get any worse”.Final results in Finnish elections. Centre Party winners. €sceptic Finns Party beats expectations w/ 2nd most seats pic.twitter.com/2PYSntFImH 8.04am BST Here’s your regular reminder of the debt repayments and wage bills that Greece faces:Barclays: Repayment timeline and other key events for Greece pic.twitter.com/EV6VmQPKrU 8.01am BST Many investors are doubtful that Greece will reach a deal with its creditors in time to avoid a default. With hopes of a deal at this Friday’s Eurogroup meeting now pretty much sunk, City experts are speculating about how much cash the country can find. “Although time is running short, there are clear indications that the Eurogroup meeting in Riga on 24 April might not bring a breakthrough,” said Reinhard Cluse, an economist at the bank UBS.“In the absence of a deal in the next few weeks, the government might not be able to avoid default, which – we fear – would likely raise the risk of ‘Grexit’ [a Greek exit].” Related: Eurozone crisis: Grexit edges closer as markets brace for Athens default 7.51am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.It looks like another strained weak for the eurozone, as negotiations over Greece’s bailout drag on.“There has been a little bit more impetus in the negotiations between the three institutions and the Greek government for several days.” “That’s a good development and gives us reason to hope.”"Talks with Greece have gained momentum but still long way from target - IMF" - http://t.co/9NVu6ry2WG pic.twitter.com/ATyohwQ2R0“We all want Greece to succeed. The answer is in the hands of the Greek government.”ECB’s Draghi Says Urgent That Greece Strikes Deal With Creditors http://t.co/BdnWV54zxE via @business Continue reading...
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